Why to use Tcode KP06 in SAP Co module

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When i came to know SAP COPA is required in my company, i started asking about SAP CO module. CO module is very interesting but complicative in nature.

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I am very much interested in implement the module in the company. Here the series will for full cycle of end user guide to costing modules. Keep a track of my blog by subscribe here.

KP06

I will explain the frequently used tcodes first. KP06 is the Tcode for today reading.

KP06 screenshot
SAP Tcode screenshot

This is to enter the cost centerwise expense expected for the current year. We have to enter year, cost center, cost element and then press F5 to update the data. In that menu, it will ask for cost element and planned cost. We can enter the cost in that sheet. One more option to enter the data monthwise. For that, enter one cost element say 31000 for stores, enter it and press F6 Period screen. It will show monthwise ie., april to march. We can enter the data monthwise if requires. Otherwise enter the one year planned amount in first screen itself. It will split into 12 months equally from entered data.

Why to use KP06?

KP06 is the TCode which used for making stock valution. It will compute the overhead cost for the product which are produced under the cost center. Here one cost centre means one production department.

In this way, you can use your CO-PA Customizing settings for valuation to calculate, for example, your planned revenues, planned sales deductions, and planned costs.

Where it helps?

  • To value stock
  • Find cost of production
  • To transfer material from factory to factory

After updating KP06, you have to run one more transaction to split the cost. I will explain you in next post.

What data required before KP06?

We have to get the montly / yearly plan data to enter into KP06. In my company, we are doing a reliable system. I will explain here.

We are taking previous year actual direct expense made in each cost center. We are summarising the cost centerwise data and analyse for imperfections. It may be in power or wages based on nature of business. We found power cost has to be distributed. So we got unitwise consumption for all machines yearly data and apporotioned the total power to each machine. Same way, for labour we are gettin payroll data in which cost centerwise also readily available. It become easy job as we have employee master in cost centerwise. Thank god, otherwise you have to manually convert the manpower to machinewise. It is tedious job and allocation of direction labour is not easy work.

So yearly direct expenses incured to be extracted is the main requirement.

Overhead calculation for x plant of  y company  Cost centre
Particulars 31251 31252 31253 31254 Total
Stores & Tools                        –
Power & Fuel                        –
Repairs & Maintenance                        –
Salaries & Wages                        –
Welfare Cost                        –
Rates & Taxes                        –
Insurance                        –
Depreciation                        –
                       –
Total                     –                     –                     –                  –                        –

Costing knowledge is a must to use these codes. Keep in touch or go through this blog to know more frequently.

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